Financial Data and Key Metrics Changes - Group revenues increased by 76% in historical figures, while under inflationary accounting, the rise was 15% [12] - EBITDA surged by 83% on historical figures, with a 20% growth according to inflationary accounting [12] - Net income grew by 65% in historical figures and 82% in inflation-adjusted terms, driven by strong EBITDA performance [12] Business Line Data and Key Metrics Changes - Mobile segment saw a 3-point increase in post-paid share, exceeding 71%, with blended mobile ARPU growing by 85% year-on-year [3] - Fixed broadband segment registered 169,000 net additions for the full year, with ARPU widening by 76% year-on-year [4] - Digital services and solutions revenue grew by 19% year-on-year, with cloud service revenues increasing by 50% [5] Market Data and Key Metrics Changes - Turkcell's international revenues decreased by 1.8% to TRY2.6 billion, while base revenues rose 20% in local currency terms [7] - The Turkish Republic of Northern Cyprus subsidiary's revenues increased by 20% year-on-year, driven by strong real ARPU growth [7] Company Strategy and Development Direction - The company aims to focus on digital services, data centers, and cloud solutions to meet high demand [5][9] - Investments in renewable energy and data center capacity are prioritized to enhance operational efficiency and sustainability [15] - The company plans to maintain its leadership in 5G and beyond technologies [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and economic pressures but remains committed to digital transformation [41] - For 2024, the company expects high single-digit real revenue growth and an EBITDA margin of around 42% [10][12] - The guidance reflects macroeconomic dynamics, particularly inflation, which is projected at around 37% year-on-year [10][44] Other Important Information - The company has classified its Ukrainian subsidiaries as discontinued operations due to an ongoing sales process [7] - A significant rise in interest rates impacted Financell's margins, despite revenue growth [6] Q&A Session Summary Question: What is the bottom line net income number for full year 2023, including Ukraine? - The net income from discontinued operations is TRY1.9 billion [43] Question: Why is there a slowdown in revenue growth guidance for 2024? - The guidance reflects expected impacts of inflationary accounting and operational expectations, aiming for high single-digit growth [29] Question: Update on Ukraine operations and sale process? - A transfer agreement for Ukrainian subsidiaries was signed, but completion depends on certain conditions and legal proceedings [31] Question: What is the reason for the expected EBITDA growth in 2024? - The company anticipates strong real top line growth supported by sequential price adjustments, despite inflationary pressures [38] Question: Will there be a second increase in minimum wage affecting expenses? - Current assumptions do not include a second minimum wage increase, but the situation will be monitored post-elections [38]

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q3 2023 Results Conference Call November 7, 2023 12:00 PM ET Kayahan Demirak - AK Investment Nagy Nora - Erste Group Bank AG Murat Ignebekçili - HSBC Thank you, [Gaeli]. Hello, everyone. Welcome to Turkcell's third quarter 2023 earnings call. I am Ozlem Yardim, and recently appointed as the Head of IR and M&A success. I'm here with the company more than a decade and excited to meet each of you in person in the near future. I'm always here to address your question ...

Financial Data and Key Metrics - Group revenues increased by TRY 9.2 billion, a 74% YoY growth, driven by Turkcell Turkey's expanding subscriber base and strong ARPU growth [19] - EBITDA reached TRY 9.5 billion, almost doubling YoY, with a 44% EBITDA margin, supported by strong top-line growth and reduced energy prices [37] - Net profit rose 70% YoY to TRY 3.2 billion, reflecting solid operational performance and prudent risk management [37] - Mobile ARPU accelerated by 84%, driven by price adjustments and upsell efforts, with a churn rate of 1.9% [28] - Residential fiber ARPU grew by 49%, surpassing quarterly average annual inflation, with 53% of fiber customers opting for 12-month or contract-free tariffs by June [16] Business Line Performance - Mobile operations: Postpaid subscribers increased by 404,000 in Q2, representing 70% of the mobile base, despite competitive pressures and rising acquisition costs [11] - Fixed broadband: Gained 40,000 fiber subscribers and 35,000 IPTV net additions in Q2, exceeding the annual homepass target with 165,000 additions in H1 [12][33] - Digital business services: Revenue grew 82% YoY, contributing 10% of total revenue, driven by system integration projects, data center, and cloud businesses [13] - Techfin: Paycell revenue rose 95% YoY, supported by Pay Later, mobile app store payments, and increased card usage [35] - International operations: Turkcell International revenue grew 48% YoY, with lifecell Ukraine revenue up 36% in local currency, exceeding inflation [23] Market Performance - Turkcell Turkey: Main driver of group revenue growth, supported by subscriber expansion and ARPU growth [19] - Ukraine: lifecell revenue grew 36% YoY in local currency, with EBITDA margin improving by 1.2 percentage points due to lower interconnection and energy costs [23] - Pakistan: OTT TV services surpassed 1 million active users through a partnership with Jazz [17] Strategic Focus and Industry Competition - Focus on inflationary pricing strategy, with price adjustments in August for both mobile and fixed services [30] - Continued investment in fiber expansion, with a take-up ratio expected to rebound as the company monetizes its investments [33] - Strategic partnerships in digital services, such as the nationwide QR payment project and collaborations with global studios for TV+ [14][38] - Regulatory environment: Expectation of 5G licensing and spectrum tender in 2024, with no immediate changes anticipated [62] Management Commentary on Operating Environment and Outlook - Management remains cautious on EBITDA margin for H2 due to expected energy price increases and a 37% wage hike in July [44][56] - Guidance for 2023 revised to 71% revenue growth, TRY 37 billion EBITDA, and 22% CapEx intensity [39] - FX risk management: Majority of cash held in hard currencies, with a net long FX position of US$84 million, within the neutral range [24][45] Other Key Information - CapEx intensity for the last 12 months was 20.7%, with mobile and fixed investments accounting for over 70% of total CapEx [20] - Cash position increased by TRY 7.8 billion in Q2, with FX movements contributing TRY 6.2 billion [41] - Net debt position stood at TRY 28.2 billion, with net leverage at 1x (0.8x excluding Financell) [41] Q&A Session Summary Question: Subscriber growth and ARPU outlook - Mobile subscriber growth slowed in Q2, with 165,000 net additions, driven by seasonality and prepaid segment challenges [54] - Price adjustments in August for mobile and fixed services, with further adjustments expected in Q4 to align with inflation [30][64] Question: CapEx intensity and FX impact - CapEx intensity expected to decrease slightly in 2024, but uncertainty remains due to FX dependency and macroeconomic conditions [65] - FX hedging strategies helped limit losses, with a positive M2M valuation on the derivative portfolio [31][57] Question: Ukraine operations and 5G licensing - Ukraine operations performing well despite the war, but future performance remains uncertain due to the ongoing conflict [67] - 5G licensing expected in 2024, with no immediate regulatory changes anticipated [62] Question: Financial expenses and hedging impact - Financial expenses increased due to FX movements, but hedging strategies mitigated losses, with a net long FX position of US$84 million [52][57]

Company Participants Conference Call Participants Operator At this time, I would like to turn the conference over to Mr. Ali Serdar YaÄcı, Investor Relations and Corporate Finance Director. Mr. YaÄcı you may now proceed. Thank you Gaily. Hello everyone. Welcome to Turkcell's first quarter 2023 results call. Today our CEO, Mr. Murat Erkan; and Acting CFO, Mr. Kamil Kalyon will be delivering a brief presentation on operational and financial results. And afterwards we will be doing Q&A. Now I'm handing over to ...

Turkcell Group Q1 2023 Highlights: A Promising Start to the Year 17.3 Bn TL MOBILE ARPU 67GROWTH* .9%YoY ₺ Accelerating topline growth despite earthquake effect | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------|-------------------------|-------|-------|------------------------------------------------|-----------------------------------------|------------------------------|---------------|--------------|-----------------------------------------------------| ...

Financial Performance - Net cash inflow from operating activities decreased to TRY 25,459.6 million in 2022 from TRY 38,935.1 million in 2021, primarily due to inflation adjustments[1023]. - Net cash outflow from investing activities increased to TRY 19,042.6 million in 2022, up from TRY 17,721.6 million in 2021, mainly due to cash outflows for property, plant, and equipment[1024]. - Net cash inflow from financing activities for 2022 was TRY 2,067.5 million, a significant improvement from a net cash outflow of TRY 7,397.3 million in 2021, driven by decreased dividends and increased loan proceeds[1025]. - Cash generation from issuance of loans and borrowings increased to TRY 32,250.0 million in 2022 compared to TRY 26,188.0 million in 2021[1025]. - The total cash and cash equivalents increased by TRY 8,484.5 million in 2022, compared to an increase of TRY 13,816.2 million in 2021[1023]. - The change in working capital decreased to TRY (1,688.7) million in 2022 from TRY 124.8 million in 2021, influenced by various receivables and payables adjustments[1023]. Debt and Liquidity - The company has a bond issuance certificate approved for up to USD 1 billion to enhance liquidity and finance operations[1032]. - A sustainability-linked loan agreement of EUR 70 million was extended to December 2026, with terms dependent on meeting environmental objectives[1037]. - The company signed a EUR 50 million Green Loan agreement to finance sustainable investments, with a total annual cost of Euribor+1.95%[1038]. - Turkcell signed a USD 90 million, 10-year export finance facility to finance procurement from a global vendor, with a total annual cost of 3.04%[1041]. - Turkcell issued TRY 500 million in debt securities with a 25.50% interest rate on November 23, 2022, as part of a TRY 1.0 billion program approved by the Board[1042]. - Turkcell Superonline issued lease certificates totaling TRY 200 million with interest rates ranging from 19.25% to 24.0% in 2022 and 2023[1045]. - As of February 2023, Turkcell Superonline has TRY 1.9 billion in short-term loans and TRY 1.4 billion in intra-group loans[1047]. - Financell's total loan portfolio was TRY 2.5 billion as of December 31, 2022, with 5% in foreign currency loans[1048]. - Turkcell Group's total loan exposure is TRY 8,906.9 million as of December 31, 2022[1056]. - Turkcell has a strong liquidity position with USD 1.4 billion in cash equivalents, covering debt service due in the next two years[1057]. - The debt-to-equity ratio improved to 81.1% as of December 31, 2022, down from 92.4% in the previous year[1058]. Operational Challenges - The company faces pressures from high inflation, currency devaluation, and increased capital needs for technological advancements and infrastructure investments[1060]. - The company anticipates that measures taken in response to the COVID-19 pandemic may significantly impact customer usage of networks and services, affecting revenues and liquidity[1102]. - The company has experienced a substantial decrease in international travel, adversely affecting roaming services[1102]. - The company continues to face risks related to currency devaluation and geopolitical factors, which may impact future asset values[1104]. Subscriber and Revenue Trends - The proportion of postpaid subscribers in the company's subscriber base in Turkey was 68.1% in 2022, up from 66.4% in 2021[1080]. - The company anticipates an increase in revenues from mobile data and digital services, while revenues from voice and SMS are expected to decline[1081]. - The ICTA has set maximum tariffs for national voice at TRY 1.55 per minute and for national SMS at TRY 1.11, effective October 1, 2022[1086]. Governance and Management - The Board of Directors has been expanded from seven to nine members, enhancing governance and decision-making processes[1109]. - The company has a diverse executive team, including roles focused on finance, marketing, and digital services, to drive strategic initiatives[1113]. - For the year ended December 31, 2022, Turkcell provided, paid, and accrued an aggregate of TRY 154.1 million to key management personnel, including indemnities, salaries, bonuses, and other benefits[1141]. - The company raised employee salaries twice in 2022 due to accelerated inflation, reflecting a commitment to maintaining competitive compensation[1163]. - Turkcell's employee training programs include both classroom and e-learning formats, ensuring comprehensive onboarding and ongoing development[1166]. Employee and Workforce Changes - As of December 31, 2022, Turkcell employed a total of 23,795 employees, a decrease from 25,638 in 2021, reflecting a reduction of approximately 7%[1157]. - The number of employees in the Corporate & Residential Sales department decreased significantly from 760 in 2021 to 454 in 2022, a decline of approximately 40%[1157]. - The total number of employees in Turkcell Global Bilgi decreased from 17,347 in 2021 to 15,837 in 2022, a reduction of approximately 9%[1157]. - Turkcell's Directors and Officers Liability Insurance coverage amount is USD 40 million, renewed until October 1, 2023[1141]. - The company has not experienced any work stoppages and has no collective bargaining agreements with employees[1167]. - The "Flexible Remote Working Model" allows employees to work remotely, enhancing operational flexibility[1168]. Shareholder Information - As of April 17, 2023, the total outstanding shares of the company amount to 2,200,000,000, with 54% publicly held[1174]. - TVF Bilgi Teknolojileri Iletisim Hizmetleri Yatirim Sanayi ve Ticaret A.S. holds 26.2% of the shares, making it the largest shareholder, while IMTIS Holdings S.à r.l. owns 19.8%[1174]. - The company has created a new class of Group A shares, representing 15% of total issued share capital, which grants certain voting privileges[1172]. - The company completed a significant transaction on October 22, 2020, where TVF BTIH acquired a 26.2% direct interest in the company[1178]. - The acquisition by TWF was financed through an acquisition loan, with payments starting approximately three years after the acquisition[1180]. - As of April 17, 2023, the company had 78,251,634 ADRs outstanding held by 63 registered ADR holders[1181]. - The company has entered into agreements with executive officers and shareholders, ensuring terms comparable to those available in unrelated party transactions[1183]. - 0.05% of shares, with a nominal value of TRY 995,509, have been pledged by shareholders as security in favor of banks[1181].

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q4 2022 Earnings Conference Call March 9, 2023 12:00 PM ET Company Participants Ali Serdar Yağcı - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Kamil Kalyon - Acting Chief Financial Officer Conference Call Participants Mandaci Ece - Unlu Securities Annenkov Evgeny - Bank of America Operator Ladies and gentlemen, thank you for standing by. I am Maria, your Chorus Call operator. Welcome, and thank you for joining the Turkce ...

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q3 2022 Earnings Conference Call November 3, 2022 12:30 PM ET Company Participants Ali Serdar Yac - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Osman Yilmaz - Chief Financial Officer Conference Call Participants Kennedy-Good Jonathan - JPMorgan Nagy Nora - Erste Group Demirak Kayahan - AK Investment Operator Ladies and gentlemen, thank you for standing by. I'm Mina, your Chorus Call operator. Welcome and thank you for joi ...

| --- | --- | |-----------------------------------------------|-------| | | | | TURKCELL GROUP Q3 2022 \| November 3, 2022 | | | | | | --- | --- | --- | --- | --- | |-------|-------|-------|--------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Murat Erkan Turkcell CEO BUSINESS OVERVIEW | | | | | | | | Turkcell Group Third Quarter Highlights 700 REVENUE 56.7%YoY 14.7 Bn TL 1 Mn TOTAL NET ADD EBITDA 48.7%YoY 6.0 Bn TL 240 K NEW HOMEPASS NET INCOME 67.6%Y ...

```markdown [Identity of Directors, Senior Management and Advisers](index=8&type=section&id=ITEM%201.%20IDENTITY%20OF%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20ADVISERS) This section identifies the key individuals in the company's leadership and advisory roles [Offer Statistics and Expected Timetable](index=8&type=section&id=ITEM%202.%20OFFER%20STATISTICS%20AND%20EXPECTED%20TIMETABLE) This section provides an overview of offer statistics and expected timetable [Key Information](index=8&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents essential company information, including risk factors and financial details [Reserved](index=8&type=section&id=3.A%20RESERVED) This section is reserved and contains no information [Capitalization and Indebtedness](index=8&type=section&id=3.B%20CAPITALIZATION%20AND%20INDEBTEDNESS) This section is not applicable and contains no information [Reasons for the Offer and Use of Proceeds](index=8&type=section&id=3.C%20REASONS%20FOR%20THE%20OFFER%20AND%20USE%20OF%20PROCEEDS) This section is not applicable and contains no information [Risk Factors](index=8&type=section&id=3.D%20RISK%20FACTORS) Turkcell faces principal material risks from intense competition, economic instability, foreign exchange, and regulatory changes - **Competition** in the Turkish telecommunications market, including **price-driven competition** from major operators (Vodafone Turkey, Turk Telekom) and OTT services (WhatsApp, YouTube, Spotify, Netflix), may **adversely affect business growth and financial condition**[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - Growth strategy is partly dependent on new investment opportunities, including those outside core telecom activities (e.g., financial services, mobile payments, tower operations, electric cars, energy trading), which may require **significant expenditures** and may not achieve expected returns[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - Investments in international markets (Ukraine, Belarus, Turkish Republic of Northern Cyprus) expose the company to various local economic, business, political, social, financial, liquidity, regulatory, and legal risks, including military actions in Ukraine and sanctions on Belarus[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Instability in the political environment, economy, and financial markets in Turkey, including high inflation (**61.1% in March 2022**), Turkish Lira depreciation (**81.6% against USD in 2021**), and the impact of the COVID-19 pandemic, may **adversely affect business and financial condition**[62](index=62&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - Foreign exchange rate risks, particularly due to a substantial majority of capital expenditure and debt being denominated in USD, EUR, and CNY while revenues are in local currencies (TRY, UAH, BYN), could significantly affect results of operations and financial position if hedging tools are not available or effective[72](index=72&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - Regulatory decisions and changes in the regulatory environment (ICTA, BRSA, CMB), including pricing regulations, data protection laws (GDPR, Turkish PDPA), and taxes (SCT, VAT, Digital Services Tax), could **adversely affect business, financial condition, and profitability**[92](index=92&type=chunk)[97](index=97&type=chunk)[101](index=101&type=chunk) - Dependence on network and IT systems, third-party suppliers, and exposure to rapid technological changes pose risks such as system failures, cyber security incidents, supply chain disruptions (e.g., global chip shortage), and the need for **significant capital expenditures**[113](index=113&type=chunk)[114](index=114&type=chunk)[138](index=138&type=chunk) - Two major shareholders (TWF and IMTIS Holdings) whose interests may not align with other shareholders, with TWF **controlling 26.2%** and having board appointment rights, and IMTIS Holdings facing potential sanctions related to the situation in Ukraine[141](index=141&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk) - Involvement in various claims and legal actions, including tax audits, competition board investigations, and R&D obligation disputes, could have a material effect on financial condition through significant penalties or liabilities[150](index=150&type=chunk)[151](index=151&type=chunk)[155](index=155&type=chunk) [Information on the Company](index=28&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides comprehensive details about Turkcell, including its history, business operations, and organizational structure [History and Development of the Company](index=28&type=section&id=4.A%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Turkcell, founded in **1993**, began operations in **1994**, completed its IPO in **2000**, and is listed on Borsa Istanbul and NYSE - Turkcell was founded in **1993**, commenced operations in **1994**, and completed its IPO in **2000**, listing on Borsa Istanbul and NYSE[166](index=166&type=chunk) - The company operates under a 25-year GSM license (granted **1998**), a 20-year 3G license (granted **2009**), and a 13-year 4.5G authorization certificate (granted **2015**)[169](index=169&type=chunk) - In **October 2020**, TVF Bilgi Teknolojileri Iletisim Hizmetleri Yatirim Sanayi ve Ticaret A.S. (a subsidiary of Turkey Wealth Fund) acquired **control of 26.2%** of outstanding shares, becoming the largest shareholder[166](index=166&type=chunk) 2021 Financial Highlights (TRY million) | Metric | Amount (TRY million) | | :----- | :-------------------- | | Total Revenues | 35,920.5 | | Adjusted EBITDA | 15,013.8 | | Net Income | 5,031.1 | | Capital Expenditures | 11,479.4 | - The Group's subscriber base **grew from 63,500 in 1994 to 51.6 million by year-end 2021** across Turkey and international operations[178](index=178&type=chunk) [Business Overview](index=29&type=section&id=4.B%20BUSINESS%20OVERVIEW) Turkcell has evolved into a converged telecom and digital service provider, maintaining **market leadership in Turkey** through quality services and a strong distribution network - Turkcell's business is divided into three main reportable segments: Turkcell Turkey (**75.8% of revenues**), Turkcell International (**10.4% of revenues**), and Techfin (**3.0% of revenues**), with an 'Other' segment accounting for **13.7% of revenues**[186](index=186&type=chunk)[188](index=188&type=chunk) - As of **December 31, 2021**, Turkcell Group had **51.6 million subscribers** across Turkey, Ukraine, Belarus, and the Turkish Republic of Northern Cyprus, with **39.4 million in Turkey alone**[183](index=183&type=chunk) 2021 Segment Revenue and Adjusted EBITDA (TRY million) | Segment | Revenue (TRY million) | Adjusted EBITDA (TRY million) | | :------------------- | :--------------------- | :----------------------------- | | Turkcell Turkey | 27,223.5 | 12,167.8 | | Turkcell International | 3,750.1 | 1,828.3 | | Techfin | 1,075.7 | 638.9 | | Other | 4,930.0 | 401.1 | | Intersegment Elim. | (1,058.8) | (22.4) | | **Consolidated** | **35,920.5** | **15,013.8** | [I. Industry](index=33&type=section&id=I.%20Industry) The Turkish telecommunications market is characterized by rapid technological evolution and growth potential, with **total market revenue in 2021 was TRY 79.8 billion** - Mobile technology in Turkey has evolved from 2G to 4.5G, with Turkcell offering services across these technologies and making preparations for 5G, including a 5G FWA demo in **2018**[190](index=190&type=chunk) - Fixed broadband services in Turkey include fiber, cable, FWA (Superbox), and xDSL, with Turkcell actively developing its fiber-to-the-home (FTTH) network[191](index=191&type=chunk)[192](index=192&type=chunk) - The Turkish telecommunications market has growth potential due to a young population (**median age 33.1**) and **lower penetration levels** compared to Western Europe[193](index=193&type=chunk)[194](index=194&type=chunk) Turkish Telecommunications Market Overview (2021) | Metric | Value | | :-------------------- | :---------- | | Population of Turkey | 84.7 million | | Total Market Revenue | TRY 79.8 billion | [II. Strategy](index=34&type=section&id=II.%20Strategy) Turkcell's strategy focuses on profitable growth through digital services, digital business solutions, and techfin offerings, leveraging its core competencies - Turkcell's strategy for profitable growth is built on core competencies and focuses on three key areas: digital services and solutions, digital business services, and techfin services, alongside digital transformation of the company[198](index=198&type=chunk) - The company aims to grow its customer base by focusing on the postpaid segment and expanding